depreciation schedule question

From: Anton Madievski


Experiences/opinions/advice will be much appreciated:
When I bought a unit off the plan, the developer gave me a depreciation estimation ($9,819 first year). When the building was completed, the developer commissioned (and I paid for) a proper depreciation schedule with $5,057 allowance for the first year. ($2,293 plant & equipment and $2,764 building). I wonder if anyone could comment on whether
i. halving of developers' original estimate sounds reasonable (I thought that properly done schedule should uncover more depreciable items, not less)
ii. $2.3K in plant & equipment is a reasonable depreciation on a $300K 2-bedroom 2-bathroom unit in a 13-storey building with swimming pool, gym, mini-golf, etc. and
iii. 4 pages is a typical length for a depreciation schedule ?
 
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Reply: 1
From: Robert Forward


Wow, is that all.

A new unit I purchased recently then had a QS report done on was 40 odd pages long. I had a larger amount of depreciation then you had and with a purchase price of $200k. The unit complex contains pools, lifts, BBQ's etc etc...

I think it might be worth while sending in another company for a decent QS report.

Cheers
Robert

The Sydney "Freestylers" Group Leader.

PS: "Be Not Afraid Of Growing Slowly, Be Afraid Of Only Standing Still."
 
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Reply: 1.1
From: John P


I have to agree with Rob on that Anton. That's too weird. I bought a 6 year old unit and managed to depreciate almost as much as you did for the first year. My Dep scedule cost $250 but I've heard of people paying up to $850!!!!


Australian Property Investor Magazine normally has a few adds for Quantity Surveyors - you may find that helpful.


John P
 
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